Automotive Adhesive Market

Key data points: Market size in 2027 = $12.3 million and 2035 = $17.1 million, growth forecast = 4.6% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in automotive adhesive market to 2035 by resin type (epoxy, polyurethane, acrylic, and others), vehicle type (passenger cars and light commercial vehicles), structure (structural and non-structural), application (interior and exterior), and region (North America, Europe, Asia Pacific, and the Rest of the World) Automotive Adhesive Market The future of the global automotive adhesive market looks promising with opportunities in the interior and exterior markets. The global automotive adhesive market is expected to reach an estimated $17.1 million by 2035 from $12.3 million in 2027 with a CAGR of 4.6% from 2027 to 2035. The major drivers for this market are the increasing demand for lightweight vehicles improving fuel efficiency, the rising demand for noise vibration & harshness reduction, and the growing demand for innovation in high-performance adhesive technologies. • Lucintel forecasts that, within the resin type category, epoxy is expected to witness the highest growth over the forecast period due to the high bonding strength and durability requirements. • Within the application category, interior is expected to witness the highest growth over the forecast period due to the rising vehicle interior customization and comfort demand. • In terms of regions, APAC will remain the largest region over the forecast period due to the strong automotive manufacturing and production base growth. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Automotive Adhesive Market There will be changes in the automotive adhesives market from 2025 to 2027, including use in vehicle architecture, battery bonding, and low-carbon process methods. Lucintel believes positive business trends will come from increased e-mobility and lower emissions. More and more customers will consider the performance, reusability, and thermal behavior of adhesives. • Sustainability The further reduction of solvents and the increased use of renewable raw materials and recycled content in automotive adhesives will be key in supporting the changing automotive sustainability goals. By 2030, there will be continued changes for adhesives suppliers. • Lightweight Design With the use of lightweight materials, such as aluminum and CFRP, in automotive body constructions, the demand for structural adhesives will increase. • Electrification: Increased EV sales has increased the demand for thermally conductive adhesives, flame retardant adhesives, and electrically insulating adhesives. These adhesives are used in battery manufacture and other EV-related applications. EVs have several batteries to increase vehicle range. It is expected that performance and safety of batteries will be critical in the evaluation of adhesives by customers. • Digital Manufacturing: More OEMs are specifying use of structural adhesives in body-in-white assemblies in mass market vehicles. Use of adhesives in body-in-white assemblies increases bead placement tolerance and decreases takt time in body-in-white assembly. Achieving these targets requires effective process control. • Diversification: Disruptions after 2024 have resulted in automakers and adhesive manufacturers to source from alternate suppliers in different regions. India has the potential to provide raw materials and component manufacturing for automobiles. There will be demand for adhesives in applications that address several challenges (weight, heat, vibration, corrosion, and assembly). Suppliers of adhesives with validated battery adhesive technology will be in a strong position in the market. Commodity products will be price sensitive and high-value products will be in segmented and mature markets. Recent Developments in the Automotive Adhesive Market The automotive adhesives market will experience growth from 2025 to 2027 as a result of advancements in electric vehicle technology, and the use of lightweight structures and systems in vehicles. Lucintel expects this market growth and has reported that leading automobile manufacturers are working to develop vehicles with even greater levels of recyclability. This creates an opportunity for new and advanced adhesive systems. • Battery Systems- In 2025, Henkel opened a new manufacturing facility in China to produce battery systems. This will strengthen Henkel’s battery systems supplier position in China and provide local battery systems and adhesives. Battery systems and adhesives will be in greater demand with the increased usage of electric vehicles. • Bonding Systems- Sika also focuses on advanced bonding systems for the automotive industry and reports increased sales for 2025. Sika promotes the use of advanced adhesive systems for vehicle body structures. Sika also sees an increasing trend in the use of aluminum and composite materials in vehicle structures. • Shrinking Cure Times: General Motors and Ford aggressively automated their assembly lines in 2025, and 3M’s new offerings for automotive assembly adhesives sped up automatic dispensing. Factors such as reducing the size of ovens and the time required for handling parts to and from ovens drive the interest in increasing automation. • Lower Emissions Focus: Henkel continued advancing lower emission technologies in 2025. The European market is particularly interested in improving the recyclability and reducing the volatility and energy required for curing of automotive adhesives. • More Local Production: In 2025, major adhesive producers increased their production and R&D resources near the vehicle programs of North America and Asia. Local production of automotive adhesives will become increasingly important. In the automotive industry, an emphasis on application engineering is becoming more common, and less on supplying a commoditized product. For example, when designing an electric vehicle, a supplier may need to improve the trade-off between the weight of the battery and the safety of the battery pack. Compromises may also need to be made between the weight and cost of assembly versus the potential for automation. If suppliers can achieve improved trade-offs, they may capture a greater share of the market. Strategic Growth Opportunities in the Automotive Adhesive Market The automotive adhesives market is expected to expand with the use of adhesives in place of welding for attachments in batteries and various materials in body frames. Stringent emissions standards and the shifting of automobile production to electric vehicles will increase between 2024 and 2026. Lucintel reports that market differentiators will be the performance of adhesives and the applications suited for the market. • Battery Pack Thermal Management: Battery thermal management will increasingly use adhesives to manage battery pack temperatures and provide electrical insulation. During the period of 2025 to 2028, advancements in batteries and the growth of the electric vehicle market will increase the demand for adhesives with thermal and electrical insulation. • Composite Body Structure: The use of adhesives to join composites will also increase with the use of lightweight structures and body frames. Improvements in automobile manufacturing to increase vehicle efficiency and other structural changes will also increase the use of adhesives in body frames and other structural components. • Commercial EV Fleets: The commercial electric vehicle (EV) market will create a need for robust adhesives and sealants to attach battery packs and body panels to chassis. A report by the European Automobile Manufacturers’ Association showed that registrations of battery-electric trucks increased by 29.4% in 2025 compared to the year prior. • Bio Based Formulations: Bio-based adhesives and sealants will gain traction in the automotive industry. The use of renewable content adhesives and sealants will assist automakers in achieving their supply chain and emission reduction goals. Furthermore, in February 2025, the European Commission mandated automakers to increase the use of recycled plastics in vehicles to 25% by 2030. • Automative Dispensing Services: The automotive industry will continue to increase its use of adhesives, and companies that automate the dispensing of adhesives will benefit from the increased use of artificial intelligence (AI) and other machine learning technologies. Bosch announced in March 2025 that it would spend €2.5 billion on AI by 2027. Artificial intelligence, machine learning, and other automation technologies will alter the automotive industry. Traditional automakers will be forced to partner with other companies in order to differentiate themselves and meet the new demands placed on the industry. The same will be true for suppliers of adhesives and other chemical products. The biggest opportunity will be in integrating adhesives into vehicles during the early stages of development. Automotive Adhesive Market Drivers and Challenges Variability in the global economy and turbulence in the raw materials market create both opportunities and threats for the global automotive adhesives market. The market is expected to continue to grow in the forecast period. Some restrictions on market growth are the inadequate recyclability of adhesives and raw materials, and the unequal and discontinuous production of motor vehicles. The factors responsible for driving this market include: • Design of Lighter Vehicles: The use of adhesives to bond dissimilar materials in automotive structures, such as frictional joints, can achieve load distribution and stress reduction that are otherwise not possible with traditional fasteners. Improving fuel economy and range is of particular importance to automakers, given the strict emission standards set by the various regulatory bodies, especially in the EU. • Electric Vehicle Expansion: The use of adhesives in electric vehicles has steadily increased with the development of battery packs and other electric vehicle propulsion systems. Compared to other means of powering vehicles, the number of adhesives used in an electric vehicle is greater and uses more complex applications. The report notes the sales of over 1 million electric vehicles for the month of January 2025, and projects continued growth for the foreseeable future. The report suggests that the electric vehicle industry will undergo rapid expansion in the next several years, resulting in a corresponding increase in the need for various specialty adhesives, including thermally conductive, flame retardant, and electrically conductive adhesives. • Improvements in Technology: The use of specialty adhesives in the automotive industry has increased as manufacturers strive to produce lighter weight and quieter vehicles. New technologies in specialty adhesives allow for increased structural bonding and integrate other features such as improving vibration dampening. The report states that several automotive manufacturing programs in 2025 utilized automated adhesive application and bonding technologies to achieve higher production rates and better process control. The next several years will see similar advances allowing specialty adhesives to be used in traditionally non-adhesive applications, e.g. body, chassis, powertrain and interior. • Sustainability Requirements: There is growing attention on the environmental impact of various industries. As a result, the demand for more sustainable adhesives (e.g., with lower VOCs, solvents, and/or bio-based content; and that are recyclable) is rising. Adhesive bonding can be a means of reducing vehicle weight and improving durability; however, at the end of the vehicle’s life, the materials must be separated from the other components. Starting from February 2025, the EU will begin to more strictly enforce regulations concerning the circularity of vehicles, thereby increasing focus on design for recyclability. Within the next 3 to 5 years, particularly for the automotive sector, there will be greater emphasis on use of adhesives that ease disassembly of vehicles and other products, leading to a transition to more sustainable design and production. • Manufacturing Efficiency: The use of adhesives can not only replace traditional mechanisms of joining components (e.g., welding, riveting), but also facilitate continuous and automated production. Additionally, recent advances in the field enable adhesives to be rapidly cured, thereby further enhancing production rates. From 2025 to 2030, the use of adhesives will increase, particularly for the automotive sector. Within this period, there will be focus on the production of integrated vehicle structures and other components using giga casting. The challenges facing this market include: • Raw-Material Price Volatility: Petrochemical raw materials used in adhesives and other raw materials used in the production of adhesives, as well as energy, can significantly affect the price of end products. Many of the raw materials used in the production of adhesives are based on petrochemicals and can be relatively expensive. In addition to the cost of the raw materials, energy costs also affect the final price. In March 2025, global markets were characterized by instability in prices of energy and chemicals due to geopolitical reasons. In the next 3-5 years, companies will be forced to have flexible strategies regarding the sourcing of raw materials, as well as adjust their production and reformulate products. • Recycling and End-of-Life Issues: The use of adhesives in vehicles can hinder the separation of materials during end-of-life vehicle treatment and increase the difficulty in material recycling. Adhesives also can be used to bond battery packs, which increases the difficulty in end-of-life treatment. The closure of landfills also is a motivation to develop more environmentally friendly vehicles, and in 2025, the automotive industry in Europe began to focus more on design for end-of-life to better facilitate disassembly and increase the recyclability of the vehicle. Also, in the next 3-5 years, there will be increased demand on the suppliers of adhesives for the development of products that enable end-of-life disassembly, as well as products that maintain other performance of the vehicle. • Qualification and Performance Complexity: Automotive adhesives experience higher complexity in performance and qualification compared to other industries. This is due to various factors such as crash safety, heat, humidity, chemicals, and fatigue. Qualification often takes years, and minor changes in raw materials or manufacturing processes require additional qualification. In recent years, the use of mixed materials and the integration of electric vehicle powertrains increased the need for adhesives in automotive. Within the next 3-5 years, there is potential for a slower growth of the market, especially for smaller manufacturers, while larger manufacturers and partners (i.e. adhesive manufacturers, automakers, and tier suppliers) form collaborations to enter the market. Positive trends such as the increased adoption of electric vehicles and stricter regulations to reduce the emission of Greenhouse Gases encourage the development of new, high performance automotive adhesives. Recent changes in the market increase the use of adhesives in automotive structures, electrical systems, and powertrains. Adhesives facilitate the use of lightweight designs and reduce the overall weight of a vehicle. Rapid technological changes and cyclical volatility of raw material costs increase the challenge of developing, producing, and commercially offering automotive adhesives. List of Automotive Adhesive Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies automotive adhesive market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the automotive adhesive market companies profiled in this report include- • Henkel AG • 3M Company • Sika AG • Arkema • HB Fuller Automotive Adhesive Market by Segment The study includes a forecast for the global automotive adhesive market by resin type, vehicle type, structure, application, and region. Automotive Adhesive Market by Resin Type [Value ($M) from 2019 to 2035]: • Epoxy • Polyurethane • Acrylic • Others Automotive Adhesive Market by Vehicle Type [Value ($M) from 2019 to 2035]: • Passenger Cars • Light Commercial Vehicles Automotive Adhesive Market by Structure [Value ($M) from 2019 to 2035]: • Structural • Non-Structural Automotive Adhesive Market by Application [Value ($M) from 2019 to 2035]: • Interior • Exterior Automotive Adhesive Market by Region [Value ($M) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Automotive Adhesive Market The markets for automotive adhesives is undergoing changes due to electrification and the use of lightweight materials in vehicles, as well as changes in the supply chain in various regions. As of 2025, many original equipment manufacturers (OEMs) and materials suppliers focused on the safety of battery modules and cells and developing methods for structural bonding of vehicle components and systems. Additionally, many suppliers and materials OEMs invested in local production. According to Lucintel, these areas will be of major emphasis in the foreseeable future for the industry. • United States: In October 2025, the U.S. Department of Energy announced awards totaling $2.8 billion to 20 companies to construct domestic facilities to produce batteries and battery-related materials and products. It is expected that, in the next five years, the U.S. automotive industry will require structurally adhesive materials for the thermal and electrical insulation of battery and vehicle system assemblies. • China: In addition to increasing its production of new energy vehicles, China is investing in materials to manufacture new energy vehicles. In the first month of 2026, BYD Motor reported that it sold 4.60 million new energy vehicles. In 2025, the total volume of new energy vehicles sold in China exceeded 5.5 million. Rapid increases in the sale of new energy vehicles will stimulate the use of adhesives for battery packs and other vehicle structural components. • Germany: German OEMs are making significant investments in EV and battery production. Currently, the only manufacturer in Germany producing battery cells is Volkswagen at its PowerCo facility (previously known as SEZ). Salzgitter is slated to begin cell production in 2025 with an annual capacity of 40 GWh. This trend of localizing battery production will create an increased demand for fire resistant and high performance adhesives and bonding agents in German automotive plants. • India: The Indian government is moving quickly to improve battery and EV manufacturing through its various incentive programs. One of the largest of these programs is the production incentive scheme for the establishment of a 20 GWh battery manufacturing plant. This scheme was approved by the Indian government in June 2025. The increased manufacturing of EVs and batteries in India will create greater demand for adhesives and sealants in EV and battery modules and assemblies. • Japan: The Japanese automakers are also focused on the development of battery and EV technologies. One of the largest commitments to battery manufacturing and EV production was made by Toyota in 2025, where they announced a 1.7 trillion yen investment over the next 10 years. This will not only create new demand for automotive adhesives and sealants in Japan, but also innovations in battery and EV manufacturing. Features of the Global Automotive Adhesive Market Market Size Estimates: automotive adhesive market size estimation in terms of value ($M). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: automotive adhesive market size by various segments, such as by resin type, vehicle type, structure, application, and region in terms of value ($M). Regional Analysis: automotive adhesive market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different resin type, vehicle type, structure, application, and regions for the automotive adhesive market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the automotive adhesive market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the automotive adhesive market by resin type (epoxy, polyurethane, acrylic, and others), vehicle type (passenger cars and light commercial vehicles), structure (structural and non-structural), application (interior and exterior), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 7 years and what has its impact been on the industry?